Laws around furnishing a short loft area with a bed

[Eric Andersen]

Hi there,

I recently purchased my first multi family property. It's a main house and small guest house setup. The small house in the back has a loft with steep stairs (not to code I'm sure) and the headroom is about 5 feet. There are two good sized windows that someone can fit through and a smoke detector. There is evidence tenants have had the bed upstairs in the past and it would really maximize the space of the small home. I do want to rent it furnished. I was told by a friend to not put a bed upstairs as I run the risk of being sued by allowing someone to sleep up there if there is a fire. I'm assume I run the risk of being sued if there is a fire regardless. Does anyone have experience with this and can you point me in the right direction?

Thanks,
Eric